The first loan of €3.6 million (£3.3m) is being provided to Banco de Ahorro y Credito Fondesa (Banfondesa), a microfinance bank with more than 120,000 clients and 59 branches.
The loan will be used by the bank to finance renewable energy and energy-saving investments carried out by micro, small and medium sized businesses as well as medium and low income families.
The rest of the €1.4 million (£1.3m) loan to Fondo para el Desarollo INC (Fondesa), an NGO which focuses on educational finance programmes, will be used to finance renewable energy, mainly solar power and energy efficiency solutions for schools and universities over the next two years.
EIB Vice President Emma Navarro, responsible for the bank’s activity in Latin America, said: “As the EU’s climate bank, we aim to mobilise financial resources across the planet for climate-related investments.
“We are pleased to join forces with Banfondesa and Fondesa to support the development of microfinance solutions for energy efficiency and renewable energy investments in the Dominican Republic.”
The announcement comes as the EIB has proposed to stop funding new fossil fuel projects by the end of 2020.